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World’s Largest IndependentMobile Ad Network

The Economics of Building anAdvertising Supported App Business

Sridhar RanganathanVP Product Management

Mobile App Landscape

• Highly competitive• iPhone App ecosystem is very lager• Android is catching up• Market dynamics change daily and hourly!

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The Opportunity

• Still huge opportunity for developers (long tail)• Android eco-system is emerging fast• Symbian and Blackberry have large installed

base across the world• Newer App Stores are emerging too!• Top apps are worth millions of dollars

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Since its release, over 6.5 million copies of the game Angry Birds have been purchased.

Appsare ubiquitous in U.S.

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June 2010Dec 2009

• 63% of US mobile web users now have 3G and is growing.

All data from comScore

Average: 51 Apps Downloaded

• A small segment of users have download 100s of apps from iTunes

Product: iTunes Apps Tracker

Data: March 2010 - Country: US

50% of downloader‘s

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67% Have Paid for Apps

• 13% of all apps downloaded have been paid for.• The average paid app cost $2.40

Product: iTunes Apps Tracker

Data: March 2010 - Country: US

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Revenue Models: Overview

Four different ways to make money

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• Sponsorship• In App Purchase

• Paid Download• Advertising

Each model has strengths and weaknesses

Depending on the kind of App, some models are more appropriate than others

Each model has strengths and weaknesses

Depending on the kind of App, some models are more appropriate than others

Revenue Models: Paid Download

• Strength: Works best with gaming and utilities• Weakness: Promotion is difficult

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Revenue Models: Advertising

• Strength: Can drive more revenue than paid• Weakness: Requires large installed base

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Revenue Models: Sponsorship

• Strength: Great for niche apps• Weakness: Not scalable

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Revenue Models: In App Purchase

• Strength: Requires loyal repeat usage• Weakness: Difficult to achieve app loyalty

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Revenue Models: A Summary

Strength Weakness

Paid Download Works best with Gaming, Utilities Promotion is difficult

Advertising Can drive more revenue than Paid Requires large installed base

SponsorshipGreat for niche apps Not scalable

In App Purchase Requires loyal repeat usage Difficult to achieve app loyalty

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Recommended Models

Gaming Specialty Community Utility

Paid Download X XAdvertising X X XSponsorship XIn App Purchase X X

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Try Combining Models

• Mix models depending on growth stage• Experiment• Take advantage of global markets

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Android Distribution Channels

• Android Market• Telco partnership• Self sold• Third party sites Handandgo, GetJar

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Build a Business, not just an App

• Build a portfolio of Apps• Create synergy between apps• Use loss leaders to build brand• Variable pricing• Develop quality content• Volume of apps also matters• Take maximum advantages of social channels• Exploit global nature of App market

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Tipsfor Monetizing With Ads

• Test everything• Use data to improve performance• Experiment with ad placement• Experimentwithad formats• Try multiple ad networks• Develop directly for ad verticals (cars, travel,

finance, real estate, etc.)

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Picking an Ad Network

• Some important questions:• In what regions are you trying to monetize• What platforms are you developing for• Type of content: games, music, cars• What level of reporting and analytics does the

network provide you

Think Globally

• eCPMs vary globally but not by a big margin

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129 125

10190

70

Index by regionSourced from our Nework

eCPMs Top 20 Countries

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The InMobi Ad Network

• Largest independent mobile ad network• Multi-platform, including

• iOS• Android• Blackberry• Symbian

• Live in 115 countries

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Our Network

North America3.2 Billion Ad Requests North America3.2 Billion Ad Requests

Europe1.8 Billion Ad Requests Europe1.8 Billion Ad Requests

Africa2.8 Billion Ad Requests Africa2.8 Billion Ad Requests

Asia Pacific11.5 Billion Ad requests Asia Pacific11.5 Billion Ad requests

Middle East 0.5 Billion Ad Requests Middle East 0.5 Billion Ad Requests

• Can offer ad monetization for developers in almost every region, globally.

Invictus

Developer Profile• InvictusGames is a

leading game developer founded in 1992.

• Have games on many platforms including PSP, iPhone and PC

• Successful with their iPhoneFroggy Jump.

• Froggy Jump has over 3 Million downloads

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Invictus

Monetizing Froggy Jump• Invictus integrated InMobi

along with other ad networks to monetize Froggy Jump

• InMobi outperformed others on monetization

• eCPMsincreased on average by 40%, nearly double that of other networks.

• "Set up was easy, and InMobi's online tools for publishers are very comprehensive", said Tamas Kazak CEO of Invictus.

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Simpaddico

Developer Profile• Founded by Adam Lewis and Alex Miyamura• Started making apps in February 2009

– First app was a simple Rubik’s Cube App– 100s of apps in Android Market and iTunes store– Self funded and profitable

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Simpaddico

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App Portfolio– 8 Million app downloads– 10 Million ad requests per month

Simpaddico

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App Concept

• Air Horn

• Most popular app– Simple concept

– Sports/Event tie in

– Not complex to program

– Mobile specific experience

• Free with limited sounds

• Paid with additional sounds

InMobi World Developer Fund

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• $2 Million World Developer Fund– Normally ad networks share revenue with publishers– We offer you 100% of revenue earned– Program lasts until the fund is gone

• Real support for developers

Key Messages

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• Think globally – users can come from anywhere!• Build an App Portfolio for a sustainable business• Test and experiment – user experience,

monetization options, pricing options• Continuously optimize based on data and user

behaviour/experience feedback• Have fun!

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About Us: Global Ad Network

• 21.2 Billion impressions• 7Offices• Live in 115 countries

• 185 Million Consumers reached• 150+ employees• 2000+ Advertisers

San Francisco San Francisco

London London

Johannesburg Johannesburg

Mumbai Mumbai

Bangalore Bangalore

Tokyo Tokyo

SingaporeSingapore

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A Selection of Partners

THANK YOU

Sridhar Ranganathan

sridhar@inmobi.com

+91 98808 46087

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